What can they take during bankruptcies Ontario?

_{bankruptcy assets, asset seizure, Quebec}

In Ontario, bankruptcy can mean giving up assets that exceed exemptions: over $10,000 in home equity, vehicles beyond $6,600, tools over $11,300 ($29,100 for farming), and household items worth more than $13,150. Recent contributions to RRSPs might also be vulnerable. Stay informed to protect your assets!

Show Table of Contents

_{Assets at risk in Ontario bankruptcy include homes, vehicles.}

Bankruptcy Assets Question

What can they take during bankruptcies Ontario? If I declare bankruptcy in Ontario, what assets might I lose?

From: Anonymous Question
Location: Montreal, Quebec (QC)
Category: personal bankruptcy

Bankruptcy Assets Answer

In the world of bankruptcy in Ontario, certain assets might be up for grabs if they go beyond specific exemption thresholds. We’re talking about the extra equity in your main home that exceeds $10,000, vehicles worth more than $6,600, any tools and gear over $11,300 (or a cool $29,100 if you’re in the farming game), and household items and appliances with a liquidation value above $13,150. And if you’ve been socking money away into RRSPs, RRIFs, and DPSPs in the last year, those contributions might also be at risk.

From: Insider Adam

Office of the Superintendent of Bankruptcy (OSB) Answer

In Ontario, if you declare bankruptcy, you may lose several types of assets, but certain exemptions apply. According to the Bankruptcy and Insolvency Act, Section 67 outlines property that can be seized by a trustee, which generally includes:

1. Non-exempt assets, meaning anything not protected under exemptions.
2. Equity in real estate, if it exceeds the exemption limits defined under Ontario law.
3. Vehicles that exceed a specified value.

Exemptions in Ontario allow you to keep:

1. Basic household items necessary for daily living.
2. Personal effects, such as clothes and furniture, up to a specific value.
3. A modest vehicle, subject to a value limit.
4. Pension plans and certain types of insured life policies.

For detailed guidance, refer to the specific jurisdictions in the Bankruptcy and Insolvency Act, particularly Section 67 (Property not to be seized) and the relevant regulations found in SOR-2007-256 (Bankruptcy and Insolvency General Regulations).

From: OSB Helper

Related Questions to Asset Seizure

Here are the top 5 most frequently asked questions related to what can be taken during bankruptcies in Ontario, along with brief answers:

1. What assets are exempt from seizure in a bankruptcy in Ontario?

• Necessary clothing, household furnishings and appliances up to $13,150, a personal vehicle up to $6,600, tools for earning a living up to $11,300, and a principal residence with equity of $10,000 or less[1][4].

2. Can I keep my car in a bankruptcy in Ontario?

• Yes, if the car’s liquidation value is $6,600 or less; otherwise, you must pay the excess value to keep it[1][4].

3. Are RRSPs and RRIFs protected in a bankruptcy in Ontario?

• Yes, contributions made more than 12 months before the bankruptcy are exempt, but contributions within the last 12 months may be subject to seizure[2][4].

4. Can creditors seize my home in a bankruptcy in Ontario?

• No, if the equity in the home is $10,000 or less; if the equity exceeds $10,000, it is not exempt[1][4].

5. What happens to my retirement savings and life insurance policies in a bankruptcy in Ontario?

• Retirement savings like RRSPs and RRIFs (except recent contributions) and life insurance policies with designated beneficiaries are generally exempt from seizure[2][4].

If you have a question about debt see our debt questions or ask your own debt related question.

References

_{Table of article references}